China’s One Belt, One Road: Vis À Vis a Market-based Alternative Transnational Economic Framework

The Chinese leader, Xi Jinping, announced in 2013 an ambitious two-trade corridors: The One Belt and the One Road (OBOR) initiatives to link the Chinese economy with its neighbors to the West and to Central Asia, the Middle East, and Europe. The Belt and the maritime Road reach Venice in Europe. The economic geography of the participants is central Asia countries Kyrgyzstan, Kazakhstan, Uzbekistan, Tajikistan, and Turkmenistan along with Asian boundary countries. Additionally, the route of the 21st Century Maritime Silk Road is likely to include Guangzhou, Beihai, Haikou, Hanoi, Kuala Lumpur, Jakarta, Colombo, Kolkata, Nairobi, Athens, and Venice. This Chinese-centric scheme represents one-third of the global GDP and an estimated one-fourth of global trade and could provide for significant economic transformation along both the Road and the Belt. The economic scheme is initially estimated to cost .9 trillion dollars during the first phase and an additional 3 trillion dollars in annual investments following the first stage. US President Biden stated at the conclusion of the recent G7 Summit that the participating market-based Organization of Economic Cooperation and Development (OECD) economies agreed, “to a democratic alternative to the One Belt and One Road initiative.” To the OECD countries, transparency matters, and a market-based transnational-centric approach could provide a better opportunity for economic development. Our article proposes to highlight the important metrics and economic opportunities and challenges of the OBOR initiative. China indicated that its financial institutions and banking sector could provide up to 8 trillion dollars to cover the cost of the needed infrastructure in transportation, highways, and port facilities going through over sixty countries, ultimately benefitting an estimated 60% of the world’s population. The current GDP estimates of China are 18% of the global GDP and of the United States, 25% of global GDP. From the Chinese perspective, OBOR will benefit the lesser economic region of China (Xingong) and other bordering Chinese regions in the west of the country. The Chinese manufacturing center will also benefit, and so will the steel industry, telecommunications, and